NIIT Learning Systems Chief Financial Officer Sanjay Mal Sells 68% Of Holding

Anyone interested in NIIT Learning Systems Limited (NSE:NIITMTS) should probably be aware that the Chief Financial Officer, Sanjay Mal, recently divested ₹19m worth of shares in the company, at an average price of ₹484 each. Equally important, that sale actually reduced their holding by a full 68% which hardly makes us feel bullish about the stock.

View our latest analysis for NIIT Learning Systems

The Last 12 Months Of Insider Transactions At NIIT Learning Systems

In the last twelve months, the biggest single sale by an insider was when the CEO & Executive Director, Sapnesh Lalla, sold ₹52m worth of shares at a price of ₹375 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹540. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 29% of Sapnesh Lalla's stake.

NIIT Learning Systems insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does NIIT Learning Systems Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that NIIT Learning Systems insiders own 6.1% of the company, worth about ₹4.4b. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At NIIT Learning Systems Tell Us?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But since NIIT Learning Systems is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for NIIT Learning Systems you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.